CCEA approves Cochin Shipyard IPO

The Cabinet Committee on Economic Affairs, chaired by the Prime Minister has given its approval for issue of an Initial Public Offer (IPO) of Cochin Shipyard Limited (CSL).

The approval is for issue of an IPO to the public consisting of 3,39,84,000 equity shares of Rs10 each amounting to an equity capital of Rs.33.984 crore.

the break up of the shares on offer consists of fresh issue of 2,26,56,000 equity shares and sale of the government of India's stake in CSL worth 1,13,28,000 equity shares of Rs.10, through a public offering in the domestic market as per Securities and Exchange Board of India (SEBI) rules and regulations.

The fresh shares are being issued by CSL in order to part-finance expansion in short and medium term for setting up an international ship-repair facility at Cochin Port Trust area, and, setting up of a large dry dock within the CSL premises to take up construction of larger ships such as large-sized aircraft carriers, VLCCs and to take up underwater repairs of rigs and semi submersibles.

There would be no financial outgo from the government on account of the issue of shares. The disinvestment will, in fact, raise resources for the government as CSL is in sound financial health.

CSL was incorporated in 1972 as a fully owned Government of India Undertaking and was conferred Miniratna-I status in 2008.